The U.S.-based global investment banking firm Citigroup announced its financial results for the fourth quarter of 2017 on Tuesday.
Revenue in the final quarter of last year rose to $17.3 billion, from $17 billion compared to the same period of 2016, marking a 1.8 percent increase, according to a Citigroup statement.
The investment firm posted a net loss of $18.3 billion for the October-December 2017 period, compared to a net income of $3.6 billion for the same period in 2016.
This net loss "... included an estimated one-time, non-cash charge of $22 billion ... recorded in the tax line within Corporate/Other, related to the enactment of the Tax Cuts and Jobs Act (Tax Reform)," Citigroup said in the statement.
The U.S. President Donald Trump administration's tax reform proposal signed into law last month will lower the corporate tax rate in the country to 21 percent from 35 percent. This is expected to boost American companies net income and revenue in the long-run.
However, a lower tax rate also means the value of U.S. companies' deferred tax assets will decrease. American firms had calculated their deferred tax assets at the older and higher 35 percent rate previously.
Since the tax reform makes those deferred tax assets less valuable, the U.S. firms can make charges just once for them in their financial statements.
"Excluding the impact of Tax Reform, net income of $3.7 billion increased 4 percent from the prior year period," the statement said.
If the impact of the tax reform is not included in the Citigroup's financial statement, an increase of 2.8 percent in the firm's net income year-over-year will be made.
After Citigroup's 2017 financial results beat market expectations, the company's stock price gained 2.2 percent in the U.S. stock market to reach as high as $78.44 per share on Tuesday.
By Ovunc Kutlu in New York
Anadolu Agency
energy@aa.com.tr